Petrol Price in Dehradun
Dehradun is currently the provisional capital of Uttarakhand. National Institutes and Organisations such as Oil and Natural Gas Corporation Limited (ONGC) and the Indian Institute of Petroleum are situated in the city of Dehradun. The city is also home to the Indian Military Academy and other premier educational and training institutes.
Situated between the river Ganges and Yamuna, Dehradun is popular for its scenic landscape attracting tourists from across the country. The city’s transportation system is well aided by State-run buses as well as private taxis and auto rickshaws. Two-wheelers and four-wheelers add to the vehicular density to the city.
With an increase in the vehicular population, petrol consumption is on the rise in the city. Petrol prices are revised daily in Dehradun similar to other cities in the country. Why are petrol prices revised daily? What are main aspects of pricing of petrol? Why does petrol prices increase? Given below is an analysis that offers insight into these questions which influence the petrol price in a city like Dehradun.
How are Petrol Prices in Dehradun Assessed?
The Retail Selling Price (RSP) of petrol in Dehradun includes the global crude oil price, freight charges, the refinery transfer price (RTP), dealer commission, the central government’s excise duty, and the Value Added Tax (VAT) levied by the state government.
The price of crude oil is the price incurred by State-owned oil marketing companies (OMCs) by purchasing it from oil-producing countries. Currently, the cost for a barrel of crude oil, which holds 159 litres, costs $66.96. The price of a litre of crude oil is added to the price breakup of petrol. Apart from the cost of the crude oil, the refinery cost is also incurred by OMCs. The dealer commission levied by fuel station owners may vary within a city.
What Factors Influence Petrol Prices in Dehradun?
Petrol prices in India fluctuate daily due to several factors which are external and internal in characteristics. While the crude oil rate and the US dollar exchange rate are external in nature, taxes and other operational costs form internal factors. Let’s review each of the factors in detail to understand what increases or decreases the petrol price in Dehradun.
- External Factors: Crude oil is purchased in barrels from oil-producing countries. Any shortage in production or supply, higher demand or geopolitical tensions increases the price of crude oil in the international market, while an increase in production or supply leads to a decrease in the crude oil rate. Since crude oil rates are dynamic in nature, petrol prices are revised accordingly. Trading of crude oil in the international market happens in US dollars. Any fluctuations in the dollar value impact the cost to purchase the crude oil. Therefore, any appreciation or depreciation in the US dollar value affects the petrol price.
- Internal Factors: The petrol price breakup includes taxes levied by the Centre and the respective State where petrol is sold. The central government levies Rs.19.48 per litre as excise duty, while the state of Uttarakhand charges VAT at 29%. Taxes form the biggest components in the breakup of the petrol price in India. The crude oil is purchased and refined at the refinery by OMCs such as Indian Oil, Bharat Petroleum and Hindustan Petroleum. The OMCs add their profit margin, overhead expenses and dealer commission before petrol is sold at the RSP. Any changes to tax rates, profit margins or dealer commission leads to a revision in the petrol price in Dehradun and in other cities across the country.
How Often are Petrol Prices Revised in Dehradun?
Until 16 June 2017, petrol prices in Dehradun and across other cities in India were revised on a fortnightly basis taking into account the fortnight average price of the global crude oil and the US dollar exchange rate. However, this didn’t let OMCs revise the petrol price in case there was a sudden spike in the crude oil price. To offset any losses incurred by the oil companies, the ‘dynamic fuel pricing’ mechanism was introduced.
Under the new pricing mechanism, petrol rates are revised daily based on the previous day’s crude oil price and the dollar exchange value. Petrol rates are updated daily at 6:00 a.m. IST. The daily revision in fuel prices has been implemented to pass the changes in the global crude oil price to the end consumer.
Methods to Track the Current Petrol Price in Dehradun
With petrol prices revised on a daily basis, there are several methods to track the latest petrol price in a city. Customers can track the petrol price through mobile apps, SMS or via OMCs’ respective website.
- Mobile Apps: Oil companies have launched mobile apps to find out the current petrol rate in a city. The ‘Fuel@IOC’ app by Indian oil, the ‘SmartDrive’ app by Bharat Petroleum, while the ‘My HPCL’ app by Hindustan Petroleum offers the current petrol price in Dehradun.
SMS: For those looking to make use of the SMS service, customers can send SMS in the below format to track the respective city’s current petrol price.
- IOC: Type RSP
Dealer Code and send SMS to 9224992249.
- BPCL: Type RSP
Dealer Code and send SMS to 9223112222.
- HPCL: Type HPPRICE
Dealer code and send SMS to 9222201122.
- IOC: Type RSP
- Online Portal: OMCs update their respective website with the latest petrol price in cities across the country.
Petrol Vs. Diesel Price in Dehradun
Petrol rates are higher compared to diesel prices in India. This is due to higher taxes and the extensive use of diesel by commercial and public transportation system - which aid the economy of the country. While petrol attracts excise duty of Rs.19.48 per litre, diesel is levied Rs.15.33 a litre. Also, the VAT charged by Uttarakhand on petrol is 29% while of diesel is 16.94%.
The average petrol prices in the month of April in Dehradun stood at Rs.76 per litre and the average diesel rate stood at Rs.65.65 a litre with an average difference of Rs.10.35 a litre.
Effect of GST on Petrol in Dehradun
While petrol is charged with excise duty and VAT in Dehradun, the new Goods and Service Tax (GST) is not applicable to the fuel. Since the current tax rate is higher compared to the highest tax slab in the GST, the revenue generated by the government will be impacted. However, if petrol comes under the GST, the final price at which the end consumer pays will reduce significantly.
*Disclaimer: BankBazaar makes no guarantee or warranty on the accuracy of the data provided on this page, the prevailing prices are susceptible to change and provided on an as-is basis. We accept no liability for any loss arising from the use of the data contained on this website.